UK public sector net borrowing rose £1.8 billion year on year to £24.5 billion in September, £1.9 billion above the Office for Budget Responsibility forecast and above the £24.1 billion economists expected, just a week before Chancellor John Healey's first Budget. Total government spending rose 5.6% to £111.3 billion, driven by higher debt interest tied to rising global borrowing costs linked to the Middle East conflict; central government debt interest of £10.9 billion was the largest September figure on record. Public sector net debt passed £3 trillion for the first time, up £91.7 billion on a year earlier, but fell 0.7 percentage points as a share of GDP to 94%. UK inflation rose to an 11-month high of 3.5%, partly due to fuel costs linked to the Iran war. Economists say fiscal headroom is only £10 billion to £15 billion, so any Budget giveaways are likely to be modest and temporary.
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▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.33800 |
| Change that session | +0.57% |
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